Celadon Group, Inc. (NYSE: CGI) is having an overwhelmingly rough time in the market at the moment, and for good reason. Prescience Point Research Group recently released a sell-side report on the stock, causing fear in investors and sending the stock tumbling down. As is almost always the case, our partners at Trade Ideas were the first to alert us to the movement. At the moment (12:44) CGI is trading at $5.40 per share after a loss of $0.83 per share (13.32%) thus far today.
Prescience Point Research Group Sends CGI Tumbling Down
As mentioend above, Celadon Group is having a rough time in the market at the moment as the result of a sell-side report released by Prescience Point. In fact, the report was so bad that the research group said that they are worth $0.00 per share. Here are the main points the group offered with regard to the stock:
- CGI shares are worth $0.00 per share.
- Over 95% of CGI’s reported tangible book value does not exist. CGI’s actual TBV is no more than $.42/share.
- CGI will restate its historical results because of the issues exposed in this report.
- CGI will be bankrupt or insolvent within 1-2 quarters; existing shareholders will be wiped out.
- CGI stock should be de-listed from the NYSE.
- Regulatory and law enforcement agencies with subpoena power should launch a full investigation of the company, its accounting, and its practices.
Stop wasting your time! Find winning trades in minutes with Trade Ideas!
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on CGI. In particular, we’re interested in seeing how the company responds to the sell-side report. We’ll continue to follow the story closely and bring the news to you as it breaks.
Want The News Faster?
Check out the CNA Finance Trading Desk to get the data before we even have time to break the story!
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!
[Image Courtesy of Pixabay]